Maryland Insurance Laws on the State Licensing Exam

Maryland's state section draws from the Maryland Code, Insurance Article — a comprehensive statute administered by the dedicated Maryland Insurance Administration (MIA). The ~20 interleaved state questions on each major Maryland exam cover MIA Commissioner authority, Maryland Insurance Article producer licensing provisions, unfair practices, and line-specific Maryland law. For the Life/A&H exams, Maryland Health Connection (state ACA exchange), Maryland Medicaid (expanded), LTC tax credits, and the Annuity training requirement are the highest-priority state topics. For P&C exams, Maryland's at-fault system combined with contributory negligence (the same as Virginia — any fault = complete bar), mandatory UM at 30/60/15, waivable PIP, EUIM, and the prohibition on using credit history in underwriting are the core state law areas. Here's what every Maryland exam candidate needs to know.

Maryland's Insurance Legal Framework

MIA Commissioner Authority — Core State Section

Maryland Insurance Administration:

Dedicated insurance regulator — NOT multi-sector

Commissioner: Marie L. Grant (confirmed April 2025)

200 St. Paul Place, Suite 2700, Baltimore, MD 21202

Phone: (410) 468-2411 or (800) 492-6116; Email: [email protected]; Website: insurance.maryland.gov

Commissioner authority under Maryland Insurance Article:

License, suspend, revoke producers and insurers

Market conduct examinations

Investigate unfair practices under Maryland Insurance Article Title 27

Issue cease and desist orders

Impose civil penalties

Civil penalties: up to $5,000 per violation for licensed producers (increased from $500 effective October 1, 2024)

October 2024 regulatory update (testable):

Bulletin 24-19: PLE eliminated effective October 1, 2024

Civil penalties increased effective October 1, 2024

Detached condo units require separate homeowners insurance

Bulletin 25-10 (June 2025): Restrictions on satellite/aerial imagery for cancellations/nonrenewals

Producer Licensing (Maryland Insurance Article)

All key facts tested:

PLE: NOT required (eliminated October 1, 2024)

Prometric exam: $60; 70%; 6-month score validity; 4-day retake wait

No fingerprinting required

ITIN accepted (in addition to SSN, FEIN)

NIPR application: $54 + $5.60; 7-10 business days

Temporary Life license: 15 months

Renewal: 2 years; last day birth month; $69 ($54 + $15 fraud prevention); 90-day renewal window

Late renewal: $169 ($54 + $15 + $100) up to 1 year; after 1 year: new application

CE: 24 hours (3 Ethics); no carryover; must complete before renewal submission

Appointments: Maryland does NOT require appointment reporting to MIA except for terminations for cause

License grounds for action:

Misrepresentation in application

Violation of Maryland Insurance Article

Misappropriation of premium funds

Incompetence or untrustworthiness

Prior license action in any state

Fraud or unfair trade practice

Unfair Trade Practices (Maryland Insurance Article Title 27)

Named practices — all tested:

Misrepresentation, twisting, churning, rebating, defamation, unfair discrimination, unfair claims settlement

Maryland Life Insurance State Laws

Annuity training: Maryland requires an MIA-approved course before selling annuities. Verify current required hours and any Best Interest updates at insurance.maryland.gov.

LTC training: Standard initial LTC training (MIA-approved) required before selling LTC products. 4-hour ongoing every renewal period.

LTC tax credit (specifically in exam content outline): Maryland provides a state income tax credit for qualifying LTC insurance premium payments — a specifically Maryland provision. Producers advising on LTC in Maryland can add tax planning value by noting the state LTC tax credit.

15-month temporary Life license: Available from MIA; among the most generous temporary license periods nationally.

Maryland Health Insurance State Laws

Maryland Health Connection: Maryland's state ACA marketplace at marylandhealthconnection.gov; administered by the Maryland Health Benefit Exchange (MHBE). Established under Md. Code, Insurance §§ 31-102-31-207.

255,612 enrolled for 2026 coverage — Maryland Health Connection leads the nation in per-capita enrollment growth, helped significantly by Maryland's state Premium Assistance program.

Maryland state Premium Assistance program (2026 expansion):

Previously limited to young adults (18-37)

Expanded in 2026 to all ages up to 400% FPL

Partially offsets loss of enhanced federal subsidies at end of 2025

~177,000 enrollees receiving MD state-funded subsidies in early 2026

Maryland Medicaid (expanded): Adults up to 138% FPL qualify for Maryland Medicaid.

Maryland does NOT have an individual health insurance mandate — no state tax penalty for being uninsured.

Required health insurance benefits (Md. Code, Insurance § 15-300 et seq.): Maryland mandates specific health insurance benefits including: elderly benefits, Alzheimer's treatment, mental illness treatment, prescription medications, IVF, pregnancy/childbirth disability, breast cancer screenings, hospice care. These mandates apply to state-regulated insurance products.

Maryland P&C Auto Insurance Laws

Maryland is an at-fault state — Transportation Code § 17-103.

30/60/15 liability minimums:

$30,000 bodily injury per person

$60,000 bodily injury per accident

$15,000 property damage per accident

Contributory negligence — Maryland's most distinctive tort standard (shared with Virginia): Maryland follows traditional contributory negligence — a plaintiff who bears any fault at all (even 1%) is completely barred from recovering damages from the defendant. This is one of the most tested and most specifically Maryland P&C exam facts:

Virginia and Maryland are the primary contributory negligence states in the comparison group

Completely different from NJ (modified comparative — not greater than defendant's fault) and MN/CO/TN (50% bar)

If a Maryland driver is 5% at fault in an accident where the other driver is 95% at fault, the 5%-at-fault driver recovers nothing from the other driver's liability coverage

UM/UIM requirements:

UM: Required; must match liability limits (30/60/15)

Cannot be waived — Maryland is one of the few states where UM cannot be waived

UIM: Available; required to be offered; can be reduced below liability limits in writing

Enhanced UIM (EUIM) — Md. Ins. § 19-509.1 (specifically testable): Maryland offers EUIM that "stacks" on top of the at-fault driver's liability coverage rather than offsetting it. Example: At-fault driver has $30,000 liability; EUIM with $50,000 limits adds $50,000 on top = $80,000 total recovery potential. Standard UIM would pay only the difference ($50,000 - $30,000 = $20,000).

PIP (Personal Injury Protection):

Minimum: $2,500

CAN be waived in writing if driver has adequate health insurance

Must be offered on all Maryland auto policies

Even though Maryland is an at-fault state, PIP is required to be offered — unusual combination

Prohibition on credit history in auto underwriting: Maryland prohibits using credit history for auto insurance underwriting (Md. Ins. § 27-501) — however, credit scoring is allowed for rating (premium calculation) but not for determining eligibility (COMAR 31.15.11.09). This is a specifically tested Maryland consumer protection provision.

MAIF (Maryland Automobile Insurance Fund): Maryland's assigned risk pool for high-risk drivers. MAIF also competes on the voluntary market — a private/quasi-public hybrid similar to Chesapeake Employers Insurance in workers' comp.

Electronic verification: Maryland uses an electronic verification system to monitor auto insurance compliance. Gaps trigger Notice of Non-Compliance within days requiring response within 30 days; failure results in registration suspension.

Maryland Workers' Compensation

Coverage threshold: 1+ employee (full-time or part-time).

Exemptions: Sole proprietors, partners, independent contractors, agricultural employers with fewer than 3 employees or annual payroll under $15,000. LLC members with >20% interest may exempt themselves.

Private market with Chesapeake Employers Insurance:

Chesapeake Employers Insurance Company = state fund AND assigned risk pool administrator

Competes on voluntary market (not a monopoly like Ohio's BWC)

Maryland is an NCCI state (National Council on Compensation Insurance sets rates); Chesapeake uses some deviating classifications

Self-insurance available with MIA approval (note: MIA approves self-insurance, not a separate commission)

Non-compliance penalties: Up to $25,000 (plus potential misdemeanor charges with fines up to $10,000 or prison time).

Administered by: Maryland Workers' Compensation Commission — separate from MIA.

Maryland Property Insurance

Credit history prohibited for homeowners insurance underwriting, rating, or payment plans (COMAR 31.15.11.04) — broader prohibition than the auto restriction. For homeowners, credit history cannot be used at all (underwriting, rating, or payment plans).

Maryland Joint Insurance Association (JIA): Property insurer of last resort for high-risk properties unable to obtain voluntary market coverage.

Satellite/aerial imagery restrictions (Bulletin 25-10, June 2025): MIA issued restrictions on using satellite or aerial imagery for insurance cancellations and nonrenewals — a 2025 consumer protection update.

MN Numbers Summary for the MD Exam

5 Frequently Asked Questions

• What is Maryland's contributory negligence standard? Maryland follows traditional contributory negligence — any fault by the plaintiff (even 1%) completely bars recovery from the defendant. This is one of the most tested Maryland P&C state law facts and is shared with Virginia among the comparison states. It contrasts sharply with NJ (modified comparative — not greater than defendant's fault), and MN/CO/TN (50% bar modified comparative systems).
• What is the credit history prohibition in Maryland auto and homeowners insurance? Maryland prohibits using credit history for auto insurance underwriting (determining eligibility) under Md. Ins. § 27-501 — though credit scoring for rating (premium calculation) is allowed under COMAR 31.15.11.09. For homeowners insurance, the prohibition is broader: credit history cannot be used for underwriting, rating, OR payment plans (COMAR 31.15.11.04). These consumer protections are specifically tested Maryland distinctions.
• What is EUIM and how does it differ from standard UIM? Enhanced Underinsured Motorist Coverage (EUIM) under Md. Ins. § 19-509.1 stacks on top of the at-fault driver's liability coverage. Standard UIM pays only the difference between actual damages and the at-fault driver's liability. EUIM adds to whatever the liability coverage pays. Example: $30,000 at-fault liability + $50,000 EUIM = potentially $80,000 total recovery vs. $50,000 total with standard UIM. EUIM must be offered; policyholders can opt out in writing.
• Why does Maryland have PIP even though it's an at-fault state? Maryland is unusual — an at-fault state that nonetheless requires PIP to be offered on all auto policies (with a waivable minimum of $2,500). Most at-fault states don't require PIP. Maryland requires it to ensure quick first-party medical coverage regardless of fault determination timing. The $2,500 minimum is low (MN's non-waivable $40,000 dwarfs it) but the requirement to offer PIP is specifically Maryland. The key distinction: Maryland PIP can be waived; Minnesota's PIP cannot.
• What is the Maryland Health Connection and how does it differ from Healthcare.gov? Maryland Health Connection at marylandhealthconnection.gov is Maryland's state-based ACA exchange — established under Md. Code, Insurance §§ 31-102-31-207 and administered by the Maryland Health Benefit Exchange (MHBE). It is NOT Healthcare.gov. Maryland's exchange offers both federal APTC and Maryland state Premium Assistance subsidies. 255,612 Marylanders enrolled for 2026 coverage — a record. Virginia, Tennessee, and Ohio use Healthcare.gov; Maryland, NJ, MN, and Colorado all operate their own state exchanges.

Own the Maryland State Section

Maryland's contributory negligence, credit history prohibition, EUIM, Maryland Health Connection, and LTC tax credit are distinctive provisions that generic national materials don't cover. JustInsurance's MIA-approved Maryland courses are built around the exact Prometric content outline.

Enroll today and master the Maryland state law that determines your exam outcome.